July 20, 2011
Deleware Real Estate
CAR Survey On Out-Of-Area Title Companies To Go Out This Week; Please Respond!
In response to a request from the Glenwood Springs Association of REALTORS(R), the Colorado Association of REALTORS (CAR) this week will send a survey out to the entire CAR membership to gauge how big of an issue it is for REALTORS and their clients when dealing with out-of area title companies on REO properties. The Glenwood Board led the charge starting early in 2010, when the association advised CAR of problematic transactions with title companies who are not based in the local area of the property. These problems have included simple mistakes in assigning wrong fees, such as transfer taxes; inability by the REALTOR to get mistakes corrected on documents, astronomically high fees charged by the out-of-area title company, problems with in-person closings and the list goes on. CAR's Legislative Policy Committee has not engaged on the issue until recently, believing that the issue only affected a small portion of the membership. The Glenwood board convinced CAR to send out a survey to the membership to see how big of an issue this really is. If the survey shows this to be a substantial issue, CAR will look at legislative solutions. One solution is to allow buyers a choice of title company at closing. While this is already described in the CREC Manual, it does not happen in practice. In a meeting with stakeholders earlier this year, the mortgage brokers association made it clear they would not support legislation that would allow buyers a choice of title company through handing clients a piece of paper letting them know they can choose their own title company. Finding a good solution for this issue will be a tough, but winnable battle. First, we need you to let CAR know how you feel about out-of-area title companies!